Whitby Free Press, 1 Aug 1990, p. 4

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Former councillo0r seeks to stop new -Durham Rgon By Mike KowalskI A retired, Durham. Rego couneillor will try to convince hie Victorian Details' Exterior: *barge board, gigerbread (o ver 40 styles) *fret work, column brackets (over 40 styles) " custom deslÈgns our specialty " screen doors Interior:- * sýpandrels -9 stair risers (15 styles) -P custom interior work (located in hamilet of Balsamn 15 minutes N/W of Whitby) Pinewood Designs ,.. RR#1 Ashburn SLOB 1AO a416-649-1139 former, colle es not te bidild two new a ministration build- ings in Oshajvand Whitby. Failing thxt Doug Wilson of Oshawa will .seek a court injupc- tion te stop Durham from spend- ing $56.2 million for new iild- ings te house Region employees. Wilson dlaims a staff report reomending 'new facilities does net take into account inter- est charged on the money Dur- ham will'debenture for this pur- pose. He says that $56.2 million amortxzed'over 25 years will cost $184 million a figure that is not reflected in tle staff report. However,. Durham Regfion finance commissioner Jack Gar- ley responds that Wilson may be misreading thé report and that aIl costs, including interest charges, are spelled out. Last year régional council approved, a two-building concept te relieve overcrowding of eist- ingfacilities. The Oshawa building will house the health, social services, works and planning depart- ments, and the Durham Region Non-Profit Housin Corp A new Whitby bidn da cent te the eisting headquarters on Rossland Rd. will house the council charnbers, clerk's, person- nel, economic development, soli- citer's and finance departments. Construction of the Oshawa and Whitby buildings is expected te cost $33.3 million and $18.3 million respectively. Ini addition, moving and furniture costs are estimated at $4.7-inmilli on. ,According te, the staff M~éort, continued leasing of curren faci- lities over -a 25-year period will. cost $54.4 "million in today's dol- lars or $196.2 million baàed on the dollar's value in 2025. Leasing of space of equal qua- lity te two new buildings will cost $77 million In 1990 dollars or $308.5 million by 2025. However, construction of new buildings will'only cost $47 mil- lion at the current dollar value and $64.2 million in 2025. Although the, ataf report in- dîcates that the total cost of two buildings is $284.5 million over *25 years, this figure is reduced te, $64.2 million for various reasons. The value of the buildings. and property is expected te be*$204.3 million while the sale' of -the Rossland Rd. headquarters te, the Ontario government in 1994 (the projectedl completion date for the new faciities). will net $14.4 million. Wilson insists the report does not account for interest costs. "Fifty-six million over 25 years would be approimately $184 million at 12 per cent,» said Wilson. uThates nowhere near what it would cost te rent. Wilson charges that staff have produced a Misleading report and he will bring this te the committee's attention. He said one regional councillor told him that interest rates were ïpurposely excluded from the financial analysis. «She said 'Doug, you know when you seIl a. house te people you don',t mention the. interest charges' said Wilson. 1Gartley preferred not te specu- late on h~o Wilson arrived at his- interpreta tion, but maintains that everything is in the report. Gartley. pointed out that debenture coste of $150.6 million are included in the, total $284.5 million figure. T'his'is based on isstuing deben- tures for $44.5 million o f today's $56.2 million construction cost at 12 Per cent interest. Wilson feels the Region can meet its spaoe rqiements simply bi constructng n auxili- ary buligbhnL e current UJf would be minimal cost te build something with six or seven steries behind it,» said Wilson. Wilson said the financial im- pact of the Region's exansion plans do not personally concern mm but he is worried about future generations. "]Pm a senior citizen now, I don't care from my p oint of view. But I have granidchildren ^and care about themn and what they'll have te pay.» Meanwhile, in a related mat- ter, the union representing Dur- ham Region emplIoyees has expressed concern =ut the Pro- posed move to Oshawa. In a letter te regional council, Bill Harford, president of Cana- dian Union of Public Employees Local 1764, asks that the union be kept informed of the results of soil.testing of-the Oshawa site.' <The Oshawa building 'will -be consiuteaon. former General Motors of Canada property in doWntown Oshawa Harford says' the, union~ bas been informed the- soul testing will determine' the, nature,'-type and aznount of any .toxic chevii- cals which may have been sàtoréd or buried on the site. Durham Region chiefadminis- trative*officer Don Evans said soul testing' is, normal practice ]?irte any construction to détermine ifte gro!und can sup- port a building. Evans was not aware of any previous testinq of the location. "We aren tini a position 'te know at this point,» said -Evans.ý He added that Pthe union will be kept abreast of the findings.. Har-ford was on vacation and not available for comment. 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